Walt Disney’s ESPN unit roars back

The Walt Disney DIS unit is again bringing smiles to Wall Street after an unusually disappointing stretch. If ESPN had been, say, a starting pitcher in the major leagues, the skeptics would have whispered that it may have lost its fastball.

After five weeks of double-digit declines, ESPN’s ratings surged by 20%, thanks largely to the successful broadcasts of the exciting women’s World Cup Final on Sunday. The made-for-television Major League Baseball Home Run Derby extravaganza, on the day before the National Pastime’s annual All-Star Game, helped, too.

Disney shares are leading the Dow Industrial gainers in Thursday morning action.

What’s particularly noteworthy is that soccer isn’t typically one of ESPN’s acknowledged strengths, compared with the National Football League and the National Basketball Association. Plus, it shows that ESPN can make progress with a women’s-oriented event. The network has tried hard to reach a greater number of female viewers both to increase its universe of viewers and to build a bridge to companies that advertise their wares to women.

The success of ESPN’s World Cup event further indicates to Wall Street that the television network has ways of countering the possibilities of labor strife in professional sports. The NFL, ESPN’s most important programming, seems to be on the verge of finally reaching labor peace after months of bitter negotiations. But the NBA’s 2011-12 prospects still look questionable.

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